What Zebra Technologies Corporation told the SEC could break it.

Zebra's revenue is concentrated in its distribution channel — three (unnamed) distributor customers each individually accounted for more than 10% of net sales in each of the past three years; loss of any could materially affect sales.

“We have three customers, who are distributors of the Company's offerings, that individually accounted for more than 10% of our Net sales during the past three years. No other customer accounted for more than 10% of our Net sales during these years.”

Zebra sources some components from sole-source suppliers and certain supplies are available only from a single or limited sources that it may not be able to diversify in time; a disruption or price spike could interrupt supply and harm results.

“We source some of our components from sole-source suppliers. Any disruption to our suppliers or significant increase in the price of supplies, inclusive of transportation costs, or change in customer demand could have a negative impact on our results of operations.”

Final assembly of Zebra's hardware is performed by third-party EMS and JDM partners in facilities primarily in the Asia-Pacific region (China, Malaysia, Vietnam, Taiwan) and Mexico, concentrating supply-chain and geopolitical exposure (China-Taiwan/US-China relations) in East Asia.

“Our products are produced in facilities primarily located in the Asia-Pacific region (China, Malaysia, Vietnam, and Taiwan) and Mexico. The EMSs and JDMs produce our products to our design specifications.”

Zebra imports a significant percentage of its offerings into the US, so US-China and other trade disputes/tariffs directly pressure gross margin (2025 gross margin fell partly on tariffs, net of mitigations, which it states were fully mitigated as it exited 2025); suppliers concentrated in China add further exposure.

“The Company currently imports a significant percentage of our offerings into the U.S., and international trade disputes and increased tariffs between the U.S. and other countries in which the Company does business, including China, could negatively impact the Company's financial performance.”